Thursday, 18 March 2010

The fairytale that Greece lied to join EUROzone and the Greek financial crisis

Enough with the fairytale that Greece shouldn't get into Euro or lied to get into it. Greece entered EUROzone totally legally. The conservative Greek government of 2004-2009 tried to accuse the previous government for that and created that rumour. They made research, they found nothing wrong and eventually they admitted themselves that it was a stupid decision to doubt the previous government and only lead to giving the country a bad reputation.

The problems that Greece has today are also "miracle" of the conservative Greek government of 2004-2009. They received an economy of 4.5% progress and they managed to drop it to 0% before the crisis! They lied about the deficit to EU and the Greek people.

So yes, the Greeks have to pay. But also EU has to pay! Because Balkenende, Merkel, Sarkozy, Berluscony and the rest of the Christian-Democrat gang all knew what the Greek government was doing all these 5.5 years. But they covered the ass of their Conservative buddie (prime minister back then) Karamanlis.

So yes, now they also have to pay. Whether they will take those money from tax (Dutch/German/French) payers or not is their own problem.

Greece doesn't ask for money anyway. What does Greece ask:

If Greece had its own currency it could have de-evaluated it and get out of this crisis. But now Greece has Euro, so it's not possible.

The deficit will fall with the harsh measures and cut-backs that the new (Social-Democrat) government (of G. Papandreou) announced and everyones agrees on that.

But right now Greece can't borrow cheap money. Greece borrows money with almost double the interest of the rest EU countries! No matter how it cuts back on expenses, the high interest of those loans will eventually choke the Greek economy.

So EU has to find a way that Greece gets access to cheap loans. So what Greece is proposing is that the EU is borrowing on behalf of all the EU countries. This way, yes, Germany will borrow a little bit more expensive than what they borrow now, but Greece and the rest economies of the South will borrow money cheapper. That will complete the monetary union (EUROzone), cause now apparently it's incomplete.

According also to the French Minister of Finances, this is not about Greece. This is about an attack of 6 specific financial centres of American and Brittish interests against EURO.

They use now the weakest link, Greece. But soon they will turn to Spain and Portugal and maybe even Italy.